ESSO Exploration and Production Guyana Limited (EEPGL), ExxonMobil’s local subsidiary and its co-ventures in the country’s offshore blocks, have committed to investing $5 trillion in Guyana over the next few years.

The oil giant on Thursday presented its audited financial statements, which showed that for 2023, ExxonMobil and its co-ventures have invested over GY$6 trillion in the Stabroek Block, and have pledged an additional GY$5 trillion investment through 2027.

According to the report, the total Stabroek Block co-ventures investment committed is $11 trillion.

EEPGL’s Vice President and Business Service Manager Phil Rietema during a media briefing at the company’s Kingston, Georgetown headquarters on Thursday highlighted the long-term commitment of ExxonMobil to Guyana, emphasising the company’s presence in the country since 1999.

“We have been here since 1999, and next week we’ll mark 25 years since we signed the original contract, and this year was just the third year of profits over those 25 years. We continue to invest heavily in Guyana,” Rietema stated.

ExxonMobil, Hess, and CNOOC are co-venturers in the oil production project in Guyana’s Stabroek Block, with stakes of 45 per cent, 30 per cent, and 25 per cent respectively.

Under their Production Sharing Agreement (PSA) with the Government of Guyana, the country receives a 2 per cent royalty on all pre-cost revenues and a 50 per cent share of profits after cost recovery.

Initially, up to 75 per cent of oil produced is allocated for cost recovery, leaving 25 per cent as profit, which is split evenly between Guyana and the consortium.

This arrangement results in Guyana receiving about 14.5 per cent of overall revenues during the initial phase.

As costs are recovered, Guyana’s share could rise to 52 per cent, with most revenues classified as profit.

Rietema elaborated, saying, “We continue to invest more than we’re receiving from the block. We continue to reinvest in that. It will still take some time before we recover those investments.

“When the investments have been totally recovered in the future, then the amount of profit available to share between the Contractor Group and government will grow, and will grow considerably.”

The agreement, seen as competitive and equitable, has driven rapid exploration and development, with ExxonMobil planning to drill over 60 wells in the next six years.

This ensures ongoing benefits for all parties despite challenges like the COVID-19 pandemic.

“We’re still exploring and we’re still looking for additional development opportunities. This is bringing significant value to Guyana underpinning the growth that we’re seeing.

“As the fastest growing economy in the world, we’re proud to be part of that at ExxonMobil. And we we’re really proud we’re the best in the world at what we do,” Rietema added.

He also highlighted the broader impact of ExxonMobil’s involvement in Guyana, stating, “We are Guyana’s energy partner… It extends beyond just our oil and gas work. We’re continuing looking for opportunities to invest in the growth and development of Guyana.”

ExxonMobil has long committed to being Guyana’s development partner to fostering economic growth and energy development, ensuring mutual benefits and sustained progress for the country and its people.